child privacy

The Federal Trade Commission (FTC) has filed a legal complaint against the operator of the Sendit messaging app for unlawful data collection from minors and deceptive subscription practices. The complaint, initiated by the Department of Justice, alleges that Sendit did not inform parents about collecting personal information from children under 13, including sensitive data linked to social media. The complaint targets Hunter Rice, CEO of Iconic Hearts Holdings, Inc., Sendit's parent company, for violating the Children’s Online Privacy Protection Rule (COPPA). The FTC claims Sendit used manipulative tactics to encourage subscription purchases, misleading users with messages from fictitious individuals to create an illusion of interaction. The app reportedly did not disclose subscription costs and sent provocative messages to entice users into a "Diamond Membership" priced at up to .99 per week. The FTC's allegations include violations of COPPA, the FTC Act, and the Restore Online Shoppers’ Confidence Act (ROSCA). It was noted that in 2022, about 116,000 users reported being under 13 years old, and Iconic Hearts was aware of this due to complaints from parents and self-reported data.